UPDATE 1-World Bank objects to Uganda bill to regulate purported foreign agents

The World Bank has told Uganda's government that proposed legislation to regulate people and organisations that receive foreign funding will hinder its work in the ‌country, according to a letter seen by Reuters. The legislation, introduced in parliament by President Yoweri Museveni's government on April 15 with the stated goal of protecting national sovereignty, says any Ugandan receiving money from outside the country must register as a ‌foreign agent and disclose all incoming funds.

The World Bank has told Uganda's government that proposed legislation to regulate people and organisations that receive foreign funding will hinder its work in the ‌country, according to a letter seen by Reuters.

The legislation, introduced in parliament by President Yoweri Museveni's government on April 15 with the stated goal of protecting national sovereignty, says any Ugandan receiving money from outside the country must register as a ‌foreign agent and disclose all incoming funds. It also says foreign agents cannot "hinder, frustrate or disrupt the implementation of a government ‌policy" and criminalises the development or promotion of alternative public policies without the approval of the government.

In a letter to parliament dated April 23 and seen by Reuters, the bank said the law could expose to criminal liability a broad range of its "routine development activities", including organising meetings in which ⁠alternative ​policy ideas are discussed. "By classifying international ⁠organisations as 'foreigners' without qualification, the bill subjects them ... to all of its substantive restrictions, registration requirements, financial reporting obligations, and criminal penalties," the bank said.

Information Minister ⁠Chris Baryomunsi dismissed the bank's concerns as unwarranted. "We don't agree with their fears. Funds from agencies like the World Bank are protected... ​They need to be particular where their concerns are. Many commentators are giving views before thoroughly internalising the bill," ⁠he told Reuters.

MAJOR DONOR The World Bank is a major donor to Uganda, and currently has a project portfolio in the country of about $4.57 billion.

The ⁠bank ​halted new lending to Uganda in 2023 after the government enacted a harsh anti-homosexuality law but resumed funding two years later after authorities agreed to some compromises. Punishments under the proposed sovereignty law include fines of as much as 4 billion ⁠Ugandan shillings ($1.08 million) and prison sentences of up to 20 years.

The bill, which is currently before a parliamentary committee, has ⁠drawn criticism from opposition politicians, non-governmental ⁠organisations and commercial banks, who say it would stifle the flow of legitimate funds into the country. Museveni, who has been in power since 1986, has long accused political rivals of ‌being agents of ‌foreign powers.

($1 = 3,715.0000 Ugandan shillings)